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Re: How the computer transformed economics. And didn't.

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http://manana.garlic.com/~lynn/2016d.html#25 How the computer transformed economics. And didn't.
http://manana.garlic.com/~lynn/2016d.html#26 How the computer transformed economics. And didn't.

1989, economic model of the CITI (variable rate) mortgage portfolio (at
the time the largest player in the mortgage market) was donethat showed
small changes would result in the portfolio taking down the
institution. CITI then sold off the portfolio, got out of the market and
required a private (Saudi) bailout to stay in business. long-winded
past discussion
http://manana.garlic.com/~lynn/aepay3.htm#riskm

Middle of last decade (15yrs after CITI almost imploded), one of the
people that had been involved in the previous CITI analysis wrote
articles that the economic models then being used weren't correctly
accounting for the risk.

Towards the end of 2008 there were a number of articles trying to show
that the economic mess was the result of using bad computer models as
well as trying to blame risk managers at the institutions. However,
there were a few articles about institution risk managers who said
that business executives were forcing them to fiddle model input until
they got the desired results, aka GIGO (and calling for risk managers
having protection from business executive influence). Note that CITI
was one of the biggest players in the economic mess (demonstration
ephemeral nature of institutional memory; aka the triple-A rated toxic
securitzed mortgages were convoluted form of mortgage portfolio
helping obfuscate what was really going on).
http://manana.garlic.com/~lynn/submisc.html#toxic.cdo

other past refs to 1989 private bail-out
http://manana.garlic.com/~lynn/2008g.html#64 independent appraisers
http://manana.garlic.com/~lynn/2008q.html#26 Blinkenlights
http://manana.garlic.com/~lynn/2008q.html#57 Blinkenlights
http://manana.garlic.com/~lynn/2011b.html#27 The Zippo Lighter theory of the financial crisis (or, who do we want to blame?)
http://manana.garlic.com/~lynn/2011b.html#45 Productivity And Bubbles
http://manana.garlic.com/~lynn/2011d.html#28 The first personal computer (PC)
http://manana.garlic.com/~lynn/2011e.html#41 On Protectionism
http://manana.garlic.com/~lynn/2011k.html#89 The Grand Message in the Conceptual Spiral
http://manana.garlic.com/~lynn/2011n.html#73 Did You Hear the One About the Bankers?
http://manana.garlic.com/~lynn/2011o.html#51 The men who crashed the world
http://manana.garlic.com/~lynn/2011o.html#52 Civilization, doomed?
http://manana.garlic.com/~lynn/2012c.html#44 New Citigroup Looks Too Much Like the Old One
http://manana.garlic.com/~lynn/2012d.html#5 PC industry is heading for more change
http://manana.garlic.com/~lynn/2014b.html#24 Royal Pardon For Turing
http://manana.garlic.com/~lynn/2014c.html#67 Royal Pardon For Turing
http://manana.garlic.com/~lynn/2016b.html#72 Qbasic
http://manana.garlic.com/~lynn/2016c.html#11 Qbasic
http://manana.garlic.com/~lynn/2016c.html#86 Wells Fargo "Admits Deceiving" U.S. Government, Pays Record $1.2 Billion Settlement
http://manana.garlic.com/~lynn/2016d.html#0 Why Is the Obama Administration Trying to Keep 11,000 Documents Sealed?

-- 
virtualization experience starting Jan1968, online at home since Mar1970

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How the computer transformed economics. And didn't. Anne & Lynn Wheeler <lynn@garlic.com> - 2016-05-20 09:51 -0700
  Re: How the computer transformed economics. And didn't. Anne & Lynn Wheeler <lynn@garlic.com> - 2016-05-20 11:28 -0700
    Re: How the computer transformed economics. And didn't. mausg@mail.com - 2016-05-20 19:20 +0000
    Re: How the computer transformed economics. And didn't. Anne & Lynn Wheeler <lynn@garlic.com> - 2016-05-21 09:17 -0700

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